Master Contract 

Definition

Business object from Account Management (FS-AM) and Master Contract Management (FS-MCM) that maps a set of account contracts arranged in a hierarchy or group. The assignment can be restricted on a time basis and changed. It is used to depict cash concentration and interest compensation.

Use

A master contract forms a container that does not adopt any of the functions of a participant account. Postings can only be made to participant accounts, not to the master contract. The master contract can, however, have attributes such as limits and financial conditions.

The system stores each change in the master data.

You can implement the contract relationships as groups and hierarchies with any number of levels. You can also rank participant accounts that are on the same level in a hierarchy.

An account can be a participant in an interest compensation contract and a cash concentration contract at the same time. As a prerequisite for this, the master contract product must have interest compensation and cash concentration features.

Only accounts can participate in master contracts. Master contracts themselves cannot participate in other master contracts.

For more information about structuring an account hierarchy, see the Example of an Account Hierarchy document.

Structure

The system depicts a master contract with the help of contract elements which are closed entities, such as limit management, locks or cash concentration, and relevant business partners.

The individual contract parts are not used exclusively for master contracts; it is only when they are linked together that they form a structure that enables a master contract to be depicted with its characteristics and options.

The relationship between the master contract and the related account contracts is also defined by the participant attributes.

Relationship Between Master Contract and Product

A master contract is based on a master contract product, which in turn is based on the product category Master Contract.

The attributes and contract elements used in the Master Contract product category determine the scope of functions and descriptive characteristics.

The master contract product can enable further differentiation in the actual master contract. If it does not permit changes, the master contract must completely adopt the default values from the master contract product. These restrictions are useful in retail banking, as opposed to individual transactions.

For more information about product definition, see Product Management (FS-AM-PR).

Integration

You can process master contracts using the following channels:

·        Dialog

Direct input: You can find more information about this in the Customizing for Account Management (FS-AM) under Tools ®External Data Transfer with Direct Input ® Technical Information ® Contract Management ® Master Contract.

BAPI: For more information, see the BAPI Explorer in the documentation for the corresponding BOR object and related BAPIs.

For more information about Contract Management, choose Technical Documentation.